Closing down Thai company, necessary or not and costs

[Bob12345]

Did a search already and found some posts regarding this but not specific about what I was looking for.

 

Three years ago we opened a Thai Ltd but mostly due to time limitations and other interests we never really did much with the company.

We incurred some costs but never made much sales. 

At the end of the first year we got a financial statement made showing no costs made and no income/sales, and handed that in.

Since then we stopped doing anything with the company.

 

Now I was wondering if there is a need to officially close the company as we don't plan to do anything with it anymore?

Or can we just let it be and forget about it?

(In some countries your company registration is revoked if you don't pay yearly fees and hand in yearly statements, while in other countries the IRS will wait some time and starts fining you big amounts of money for being too late with handing in the paperwork)

 

We did not hand in the paperwork of year 2 and never heard anything about it.

On the website of the Thai department of Commerce (or whatever the name) the company is not visible anymore as being registered (it was during the first year).

I am not afraid the other shareholders will misuse the company registration to incur debts that might come back to me (trust).

 

So I was hoping someone could tell me a little more if there is a need to officially close the company, and if so, how much that would cost.

[Goldieinkathu]

I closed a Limited Partnership down 12 years ago and the cost was about 20.000B.

I closed down a company about 16 years ago and the cost was about 75.000 ( including tax)

No idea of present prices, it will depend on your lawyer/accountant.

Why don't you try to sell it?

I don't think you can just leave it.

I still get letters now and again for my first company even after all these years.

 

 

[williamgeorgeallen]

if your name is on it anywhere you need to shut it down. dont waste your time trying to sell it. there is always the risk the new owners will run up debts and the lawyer wont completely remove you from it. best place to get a quote is from a lawyer as i am sure it varies a lot firm to firm.

[12DrinkMore]

13 minutes ago, williamgeorgeallen said:

if your name is on it anywhere you need to shut it down. dont waste your time trying to sell it. there is always the risk the new owners will run up debts and the lawyer wont completely remove you from it. best place to get a quote is from a lawyer as i am sure it varies a lot firm to firm.

 

The far bigger risk is for the purchaser.

[williamgeorgeallen]

6 minutes ago, 12DrinkMore said:

 

The far bigger risk is for the purchaser.

i agree. i started my business from scratch. if i took one over i would buy the assets and start a new company. selling a company is a low risk but still best to be avoided. going by what i have seen it is better to stay out of any business really unless you are loaded and bored.

[Noreya]

(In some countries your company registration is revoked if you don't pay yearly fees and hand in yearly statements, while in other countries the IRS will wait some time and starts fining you big amounts of money for being too late with handing in the paperwork). This is exactly my case. I had a company registered in 2004 and do not handing in the paperwork from 2010. In 2016 I paid 30,000 B for accountant and 10,000 B. for lawyer to officially close a company. I am Thai for your info.

[Bob12345]

12 minutes ago, Noreya said:

(In some countries your company registration is revoked if you don't pay yearly fees and hand in yearly statements, while in other countries the IRS will wait some time and starts fining you big amounts of money for being too late with handing in the paperwork). This is exactly my case. I had a company registered in 2004 and do not handing in the paperwork from 2010. In 2016 I paid 30,000 B for accountant and 10,000 B. for lawyer to officially close a company. I am Thai for your info.

Did that include a fine or you just had to hand in statements for 2011-2016 which made it much more expensive?

(this company is also owned by 4 Thais)

[Bob12345]

It seems like closing it down is necessary and the best action to take.

In 2 weeks time we have a "board meeting" and will decide on it, but thanks all so far for the valuable information.

[plaloma]

By law, you must close your company. If they find out that's the company is not properly closed (bia d meeting, newspaper publication etc.) the director of the company can be sued and go to jail. 

I personally had different colonies during the last 20 years here in Thailand and never closed them officially as I didn't know I had to do it and'then after 5 years they are shut down by government office. 

I am right now closing my company as I don't need it anymore. Through my lawyer it would have cost me 80'000 Thb. I decided to contact an accounting office and I paid only 23'000 Thb.

hope that helps

[Noreya]

20 hours ago, Bob12345 said:

Did that include a fine or you just had to hand in statements for 2011-2016 which made it much more expensive?

(this company is also owned by 4 Thais)

Fortunately a fine was waived my accountant company just follow all paper works for 2011-2016 which almost empty business transactions activities. (this company have 3 Thai shareholders). I am a managing director who sign all paper works.

[Bob12345]

Just wanted to give an update on the question I originally asked as some might be interested.

 

1. the main reason we wanted the company closed was that some government agency sent "threats" for us not handing in the yearly statements on time, mentioning fines for the CEO personally and for the company, plus indicating we had to report at a police station to handle this 

2. one of the Thai partners contacted a Thai accountancy firm and had them produce the statements for the missing years and file for closure of the company

3. another Thai partner handled the fines and the reporting at the police station (he is rather well connected for police matters)

4. the company closure took about 3 weeks as all stakeholders had to sign and it takes time to send around the papers all over the country and get people to sign and send it to the next person in line

5. total costs for closing down and creating the missing year-end statements totalled 5,000 baht only, which was a pleasant surprise

6. the soft copy of the closure document has been sent around and the company is no more

[wordsofwisdom]

Just wanted to give an update on the question I originally asked as some might be interested.
 
1. the main reason we wanted the company closed was that some government agency sent "threats" for us not handing in the yearly statements on time, mentioning fines for the CEO personally and for the company, plus indicating we had to report at a police station to handle this 
2. one of the Thai partners contacted a Thai accountancy firm and had them produce the statements for the missing years and file for closure of the company
3. another Thai partner handled the fines and the reporting at the police station (he is rather well connected for police matters)
4. the company closure took about 3 weeks as all stakeholders had to sign and it takes time to send around the papers all over the country and get people to sign and send it to the next person in line
5. total costs for closing down and creating the missing year-end statements totalled 5,000 baht only, which was a pleasant surprise
6. the soft copy of the closure document has been sent around and the company is no more

Which accountant or law firm you used to close ?

Sent from my ONEPLUS A3000 using Thailand Forum - Thaivisa mobile app

[Nicc]

On 7/14/2017 at 1:48 PM, Bob12345 said:

Hi Bob

Could you shed some light on me please, I want to close down this thai registered company less than 2 years, i can't wait to leave this place, can u please share the contact of the guy who handle this for you , 5000b? 

or more?

my burmese lawyer wants to charge 35,000, i lost 100,000dollar here, so i am careful, very now. Please advise me.

Thank you so much

Nicc

 

On 7/14/2017 at 1:48 PM, Bob12345 said:

 

 

 

Just wanted to give an update on the question I originally asked as some might be interested.

 

1. the main reason we wanted the company closed was that some government agency sent "threats" for us not handing in the yearly statements on time, mentioning fines for the CEO personally and for the company, plus indicating we had to report at a police station to handle this 

2. one of the Thai partners contacted a Thai accountancy firm and had them produce the statements for the missing years and file for closure of the company

3. another Thai partner handled the fines and the reporting at the police station (he is rather well connected for police matters)

4. the company closure took about 3 weeks as all stakeholders had to sign and it takes time to send around the papers all over the country and get people to sign and send it to the next person in line

5. total costs for closing down and creating the missing year-end statements totalled 5,000 baht only, which was a pleasant surprise

6. the soft copy of the closure document has been sent around and the company is no more

 

[Bob12345]

On 12/14/2017 at 5:33 PM, Nicc said:

 

 

Can't help with the contact as I am not the one who arranged it.

 

The partner who arranged it has been the cause of the inactivity of the company (he broke his promises) and it took some effort to get him to pay his share in the company. So i rather not contact him about this anymore as it might seem i am checking up on him. Next time I speak to him will be over a meal and telling jokes, this company stuff is now behind me.

 

I can only give you the advice to not be involved in finding the accountant; prices normally go up when it involves non-Thais.

Get your wife/gf to find a person and be the "middleman" so they only find out later there is a non-Thai involved (after quoting the price).